Saturday, June 27, 2009

Capital Gain Account Scheme

Why I Open Capital Gain Account Scheme?
Capital Gain Account Scheme especially for those person who has earned capital gain. This scheme's main purpose is to temporarily save the unutilised amount of capital gain up to its utilisation as per time specified in particular section. The scheme is open to all tax payers who wish to claim exemption u/s 54, 54D, 54F, 54G, 54GA.

Types of Capital Gain Saving Account
There are two types of accounts for depositing the un-utilised amount.
1) Account A is like the saving bank account in a bank were withdrawals are permitted from time to time. Account A has least interest than Account B. Withdrawals are permissible

2) If any taxpayer wants to make the investment for a fixed term, he may deposit the un-utilised amount in 'Account B'. Account B's interest is cumulative and is reinvested. Withdrawals are permissible after transfer of the amount to Account A.

Where to Open Capital Gain Account Saving?
The account can be opened with any branch (excepting a rural branch) of the 28 designated
nationalised banks, like the State Bank of India, Oriental Bank of Commerce, UCO Bank, UBI, Punjab National Bank, Vijaya Bank, etc.
Some of the links are given.

Conditions/Important insurctions
  1. The deposit should be made before the due date for funishing of return for the relevant previous year.
  2. The tax payer has to open a spearate account under each secion if he intends to avail of the benefit under more than one section, refrred to above.
  3. Once again i am warning you this account is only for saving your capital gain so you can further utilise this amount for claiming exemption as per section provisions. Otherwise unutilised amount shall be taxable as capital gain for the previous year in which the specified period expires.

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